Diagrams

PPC showing maximum productive potential, opportunity cost, (in)efficiency and (un)attainable production

PPC showing maximum productive potential, opportunity cost, (in)efficiency and (un)attainable production

Constant opportunity cost

Increasing opportunity cost

Changes in production possibilities

Circular flow of income in a closed economy

Circular flow of income in an open economy

Movements along the demand curve

Shifts of the demand curve

Movements along the supply curve

Shifts of the supply curve

Excess demand

Excess supply

Maximization of community surplus

Consumer and produces surplus

Perfectly inelastic demand

Inelastic demand

Unitary elastic demand

Elastic demand

Perfectly elastic demand

Necessity (YED)

Luxury (YED)

Inferior good (YED)

Inelastic supply

Elastic supply

Unitary elastic supply

Perfectly inelastic supply

Perfectly elastic supply

Specific tax

As Valorem tax (VAT)

Subsidy

Price ceiling

Price floor

Minimum wage in labour markets

Negative production externality

Negative consumption externality

Positive production externality

Positive consumption externality

Specific tax on a negative production externality

Specific tax on a negative consumption externality

Carbon tax (on a negative production externality)

Subsidy on a positive production externality

Legislation aimed at the consumer side

Legislation aimed at the producer side

Educating consumers on the benefits of merit goods

Education consumers on the dangers of consuming demerit goods

Business cycle

Movements along the AD curve

Shifts of the AD curve

Movements along the SRAS curve

Shifts of the SRAS curve

Monetarist/New classical view of the long-run aggregate supply (LRAS) curve

Keynesian view of the AS curve

A deflationary gap in the Keynesian model

A deflationary gap in the Monetarist/New classical model

An inflationary gap in the Monetarist/New classical model

Changes to LRAS in the Monetarist/New classical model

Changes to AS in the Keynesian model

Long-run equilibrium in the Monetarist/New classical model

Automatic adjustment from a deflationary output gap

Automatic adjustment from an inflationary output gap

Keynesian economists believe that the economy can be in long term equilibrium at any level of output

Short-term Economic Growth in the Monetarist/New classical model

Short-term Economic Growth on a Production Possibilities Curve (PPC)

Long-term Economic Growth in the Monetarist/New classical model

Long-term Economic Growth Using a PPC Model

Structural unemployment

Cyclical unemployment in the Keynesian model

Cyclical unemployment in the Monetarist/New classical model

Demand pull inflation

Cost push inflation

Demand-side deflation

Supply-side deflation

Lorenz curve for Sweden, UK, and Bolivia

Poverty trap

Progressive tax

Regressive tax

Proportional tax

Expansionary monetary policy in the Monetarist/New classical model

Contractionary monetary policy in the Keynesian model

Expansionary fiscal policy in the Monetarist/New classical model

Contractionary fiscal policy in the Keynesian model

A Monetarist/New classical diagram that illustrates the implementation of a successful supply-side policy

A Keynesian diagram that illustrates the implementation of a successful supply-side policy

World price is above the domestic price

World price is below the domestic price

Tariffs

Quotas

Export subsidies

A floating Exchange rate system

A fixed Exchange rate system

A managed Exchange rate system

Likely impact on the macro economy of a currency depreciation in the Keynesian model

Likely impact on the macro economy of a currency appreciation in the Monetarist/New classical model